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Said & done before but ...

mt7895's avatar - kanji for_peace.jpg
mt7895

Jester

I know the discussion between lump sum or annuity have been discussed over and over before but ....

I'm just wondering.  (Not trying to bring any controversy.)

 If you were to win the Powerball, Megaball, or whatever lottery, and the winning amount was between $15 million - $30 million.  Would you still take the lump sum or annuity?

 If you are going to take the annuity, is there a point when you will choose lump sum?

 I've wondered about that.  I know when the Powerball is high (like in the $100 million range), I'll definitely would choose the lump sum.  But when it is low in the $15 million -$30 million range, I'm thinking maybe annuity. 

Hmm. I'm not sure ... what would you do?  I know there is no right or wrong answer.  Just want to know what you would do under those situations.

 

Avatar
dearlord

i'm the opposite...the higher the jackpot the more the of a chance i'll choose annuity

Avatar
Chewie

Money is money - the total amount is a variable that should have no bearing on the evaluation.  Never trust a Civil Servant to manage your money, the State debt should be an indication of their experience. Of course, if you've never been in a position to manage anything higher than a minimum wage income, or your allowance, you may wish to continue letting other people make those management decisions.

hypersoniq's avatar - binary
hypersoniq

in any situation I will take the lump sum. I have thought about it for a long time and for my personal situation, that makes the most sense.

here's what to do, grab a piece of aper and a pen, draw a line down the middle and on one side list the advantages of annuity and on the other the advantages of lump sum. on another sheet divide it the same and write the disadvantages of each (for your personal situation).

when done, the one with the most plus entries and the least minus entries is the way to go for you.

Avatar
lchoro

"ever trust a Civil Servant to manage your money, the State debt should be an indication of their experience."

The lottery corp's annuity is an unmanaged account. It's automatically invested in government bonds.  The equivalent in the private sector is a guaranteed fixed rate annuity.


four4me's avatar - gate1
four4me

While no one is guaranteed longevity if I was young say 25 I might choose annuity if the pot I won was 250/300 million or more. Older people above 50 in poor health should probably take the lump sum. Figuring they might not live long enough to collect the annuity. Also if you are a poor money handler now, then having a lump sum might cause you to spend deliberately and could cause you to spend all your winnings. Annuity has to be looked at from all points regarding it. Some might benefit from it while others might not.

konane's avatar - wallace
konane

Always cash whether the jackpot is low or high. 

Given the current climate of economic instability my concern would be for the solvency of the the company issuing the annuity. 

If an insurance company is issuing or insuring  .... take a long cold look at natural disasters and their impact on that industry before deciding.

Another issue is if a long term annuity holder dies their heirs have to pay estate  tax on the remaining amount which has often resulted in selling that annuity for pennies on the dollar to pay the "death" tax.  In a perfect world all death taxes would be eliminated but we're not there yet.   

bellyache's avatar - 64x64a9wg
bellyache

I would take cash whether it was a high jackpot or a low jackpot.

Todd's avatar - Cylon 2.gif
Todd

I think the three biggest factors are (1) your age, (2) the size of the jackpot, and (3) your ability to handle money.

If you can be honest with yourself, and the handling of large sums of money is beyond your ability to do well, then the annuity can be an excellent option.  In that case, do not listen to people who say that if you don't choose cash you're a moron.  You should congratulate yourself that you have the discipline and ability to look within and understand your own weaknesses.

For me, I would choose the cash no matter what, because I believe that having as much liquid assets as possible affords you bigger and better opportunities.

Pick3forSC's avatar - Lottery-017.jpg
Pick3forSC

I think the three biggest factors are (1) your age, (2) the size of the jackpot, and (3) your ability to handle money.

If you can be honest with yourself, and the handling of large sums of money is beyond your ability to do well, then the annuity can be an excellent option.  In that case, do not listen to people who say that if you don't choose cash you're a moron.  You should congratulate yourself that you have the discipline and ability to look within and understand your own weaknesses.

For me, I would choose the cash no matter what, because I believe that having as much liquid assets as possible affords you bigger and better opportunities.

I Agree!    Me & Todd think alike on this one!  Hopefully someone soon from LP will have a chance to show on here which one they chose!  But for me it's the CA$H!!!!!  40 now & realizing a little more that every day is not a given. 

Avatar
CASH Only

Lump sum. Enough said.

Avatar
Greg

Cash in a F-L-A-S-H

BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
BaristaExpress

No matter what the size of the jackpot, I'll always take the lump sum!

Avatar
Deadsantaclaus

Jester

I know the discussion between lump sum or annuity have been discussed over and over before but ....

I'm just wondering.  (Not trying to bring any controversy.)

 If you were to win the Powerball, Megaball, or whatever lottery, and the winning amount was between $15 million - $30 million.  Would you still take the lump sum or annuity?

 If you are going to take the annuity, is there a point when you will choose lump sum?

 I've wondered about that.  I know when the Powerball is high (like in the $100 million range), I'll definitely would choose the lump sum.  But when it is low in the $15 million -$30 million range, I'm thinking maybe annuity. 

Hmm. I'm not sure ... what would you do?  I know there is no right or wrong answer.  Just want to know what you would do under those situations.

 

I'll try to answer this before my power goes out for a day a two thanks to Wilma. The self imposed discipline of the annuity would be nice for me. I'm not the spendy type BUT with a major lottery win I think I'd have trouble explaining to friends and family that they didn't win I did*. The annuity would give me another piece to try to reason with them that the winnings are a finite amount spread over a 26 or 30 year period. Another point  With the annuity there is a dilemma that affects you for length of the time your receiving those checks. You're still tied to the state lottery and all that the freedom of information act for that state  entails.

If you go lump once you get the wire transfer to that special account you can pretty much cut those apron strings if you will. You can set up your own annuity possibly with the same firm(s) that handle the big two's annuity. If your disciplined enough in the first case. But if you blow that first BIG check if you will, you blew your winnings there are no more checks unlike the annuity.

Either way you attain a bit of celebrity and the tribulations that come with that. Some handle it well others not as well. Sorry if this was post  was a bit disjointed I've been up most of the night checking doors and windows in preparation for Miss Wilma. Good luck to everyone on Mega Tuesday night. If it goes similar to last years two storms that blew thru here it might be awhile before I get back on the lottery post. Good Morning and God Bless!

 

* Of course I'd share with my family within reason and of course the friends that gave me shelter after last years two storms..............         

konane's avatar - wallace
konane

Jester

I know the discussion between lump sum or annuity have been discussed over and over before but ....

I'm just wondering.  (Not trying to bring any controversy.)

 If you were to win the Powerball, Megaball, or whatever lottery, and the winning amount was between $15 million - $30 million.  Would you still take the lump sum or annuity?

 If you are going to take the annuity, is there a point when you will choose lump sum?

 I've wondered about that.  I know when the Powerball is high (like in the $100 million range), I'll definitely would choose the lump sum.  But when it is low in the $15 million -$30 million range, I'm thinking maybe annuity. 

Hmm. I'm not sure ... what would you do?  I know there is no right or wrong answer.  Just want to know what you would do under those situations.

 

I'll try to answer this before my power goes out for a day a two thanks to Wilma. The self imposed discipline of the annuity would be nice for me. I'm not the spendy type BUT with a major lottery win I think I'd have trouble explaining to friends and family that they didn't win I did*. The annuity would give me another piece to try to reason with them that the winnings are a finite amount spread over a 26 or 30 year period. Another point  With the annuity there is a dilemma that affects you for length of the time your receiving those checks. You're still tied to the state lottery and all that the freedom of information act for that state  entails.

If you go lump once you get the wire transfer to that special account you can pretty much cut those apron strings if you will. You can set up your own annuity possibly with the same firm(s) that handle the big two's annuity. If your disciplined enough in the first case. But if you blow that first BIG check if you will, you blew your winnings there are no more checks unlike the annuity.

Either way you attain a bit of celebrity and the tribulations that come with that. Some handle it well others not as well. Sorry if this was post  was a bit disjointed I've been up most of the night checking doors and windows in preparation for Miss Wilma. Good luck to everyone on Mega Tuesday night. If it goes similar to last years two storms that blew thru here it might be awhile before I get back on the lottery post. Good Morning and God Bless!

 

* Of course I'd share with my family within reason and of course the friends that gave me shelter after last years two storms..............         

God bless you and yours ..... stay safe, look to have you back posting soon!!  Blue Angel

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